The U.S. dollar and the Japanese yen fell on Wednesday on reports that the Italy government is aiming to cut its budget deficit to 2% of GDO in 2021. The government forecasted a deficit of 2.4% in 2019 and 2.2% in 2020.<\/p>\n
The country\u2019s debt-to-GDP ratio currently stands at 131%, and the government is hoping to trim the ratio to 127% by 2021, according to reports.<\/p>\n
The\u00a0<\/span>Euro<\/a><\/span>\u00a0<\/span>gained 0.3% against the dollar following the news.<\/p>\n The\u00a0<\/span>U.S. dollar index<\/a><\/span>, which tracks the greenback against a basket of six major currencies, was trading at 94.98 by 12:30AM ET (04:30 GMT), down 0.2%.<\/p>\n The Japanese yen on the other hand also slid as the\u00a0<\/span>USD\/JPY<\/a><\/span>\u00a0<\/span>pair inched up 0.01% to 113.68.<\/p>\n Earlier this week, concerns over Italian finances provided some support for both the yen and the U.S. dollar after senior Italian lawmaker Claudio Borghi said most of the country\u2019s problems would be resolved if it readopted a national currency.<\/p>\n Elsewhere, the\u00a0<\/span>AUD\/USD<\/a><\/span>\u00a0<\/span>pair traded 0.2% lower after data revealed Australia\u2019s\u00a0<\/span>building approvals<\/a><\/span>\u00a0<\/span>unexpectedly fell 9.4% in August.<\/p>\n \u201cA lower Aussie dollar is certainly helpful for the Australian economy,\u201d said Paul Bloxham, chief economist for Australia at\u00a0<\/span>HSBC Holdings\u00a0<\/span><\/span><\/span>Plc (LON:HSBA<\/a><\/span>), who sees the currency falling from near 72 U.S. cents to 68 cents by the middle of next year. \u201cThe sort of loosening we\u2019re expecting from the currency over the next nine months is about equivalent to 25 basis points of loosening on the cash rate.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar and the Japanese yen fell on Wednesday on reports that the Italy government is aiming to cut its budget deficit to 2% of GDO in 2021. The government forecasted a deficit of 2.4% in 2019 and 2.2% in 2020. The country\u2019s debt-to-GDP ratio currently stands at 131%, Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[9,10,1],"tags":[],"class_list":["post-996","post","type-post","status-publish","format-standard","hentry","category-homepage","category-latest-news","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/comments?post=996"}],"version-history":[{"count":1,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/996\/revisions"}],"predecessor-version":[{"id":997,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/996\/revisions\/997"}],"wp:attachment":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/media?parent=996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/categories?post=996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/tags?post=996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}